Why in NEWS
Union Minister of Finance said that Indian companies could now directly list their shares on foreign exchanges operating at the GIFT City-based International Financial Services Centre (IFSC) in Gujarat.
The International Financial Services Centre (IFSC)
It is a financial hub located in Gujarat International Finance Tec-City (GIFT City) in Gandhinagar, Gujarat, India.
It was established in 2015 by the Indian government to promote India as a global financial hub.
The IFSC is a special economic zone (SEZ) that offers a number of benefits to financial institutions, including:
- A low corporate tax rate of 15%
- No capital gains tax
- No dividend tax
- No withholding tax on interest payments
- 100% foreign ownership
- 100% repatriation of profits
The IFSC offers a wide range of financial services, including:
- Commodity trading
- Asset management
- Fund management
The IFSC has been growing rapidly since its inception. In 2022, the IFSC had a total of over 1,000 registered entities, including banks, insurance companies, asset managers, and hedge funds.
The IFSC also had a total of over $100 billion in assets under management.
The IFSC is seen as a major opportunity for India to become a global financial hub.
The IFSC has the potential to attract foreign investment, create jobs, and boost economic growth.
Here are some of the benefits of the IFSC for India:
- Increased foreign investment
- Creation of jobs
- Boost to economic growth
- Increased competition in the financial sector
- Improved financial infrastructure
- Enhanced reputation as a financial hub
The IFSC is still in its early stages, but it has the potential to become a major financial hub in the years to come.
The IFSC is well-positioned to attract foreign investment and to become a major player in the global financial market.